Interim Charging Order.

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expressyourself
expressyourself Posts: 5 Forumite
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edited 19 March 2019 at 5:04PM in Debt-free wannabe
Hi all,

I am a homeowner who got into debt in my mid-twenties, which taught me the importance of having solicitors as partners in any business venture I go into. In hindsight, it would have saved me in court fees which has been added onto the debt. I have a week till the Interim Charging Order hearing so that's the timescale I am working with

I would be super grateful for any advice on what would be a good way out

Key points
  • I have 13K debt to pay
  • My main asset which is the home i live in has estimated 70K equity.
  • I am due to release equity this year, (any time from June)

The offer party are not willing to accept a settlement agreement anything less than me paying the debt in full.

I have a credit card with a limit of 4K and I have 2K left to pay on it.

A) Would you advise I apply for a new credit card and/or transfer my existing 2K debt with a higher limit of 15K, use that to pay the other party and release equity (of course I won't get the best terms with a lender) but at least I won't lose my house
B) Is there any other option that would see the equity I have but not show on my credit file.

My desired outcome
I am leaning towards option B. But I can't think of a solution which doesn't show on a file that a lender could see.

I am happy to sign an agreement with any party that offers me the loan, but I don't want it to have a negative affect on how much I can borrow

Comments

  • fatbelly
    fatbelly Posts: 20,504 Forumite
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    edited 19 March 2019 at 7:55PM
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    If you've got a charging order hearing then you already have a ccj and that shows on your file for 6 years from the date of the original judgement.

    The charging order itself does not appear on your credit file.

    If there is no provision for interest then the most cost-effective option is just to let it sit there until the house sells.

    I am assuming that this is a debt solely in your name, you own the property in your name alone and you live there. If any of those things are wrong then it may slant the advice a bit.

    If you want to try put some arguments in court (in my experience none of them work) the National Debtline has a list here:

    https://www.nationaldebtline.org/EW/factsheets/Pages/countycourtchargingorders/chargingorderadvice.aspx

    Edit - you mention losing your house. This almost never happens. see

    https://debtcamel.co.uk/charging-order-sale/
  • expressyourself
    expressyourself Posts: 5 Forumite
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    Weirdly enough I may not have a CCJ just yet (I think it may be something to do with the admin side) long story.
    If there is no provision for interest then the most cost-effective option is just to let it sit there until the house sells.

    Sorry what did you mean by provision for interest?

    Yes it is solely in my name, and I live there with some lodgers

    Thanks for the debt camel link

    I am not planning to let the house sell. Ideally I would want to repay by releasing the equity from my property
  • sourcrates
    sourcrates Posts: 28,888 Ambassador
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    expressyourself wrote: »
    Weirdly enough I may not have a CCJ just yet (I think it may be something to do with the admin side) long story.



    Sorry what did you mean by provision for interest?

    Yes it is solely in my name, and I live there with some lodgers

    Thanks for the debt camel link

    I am not planning to let the house sell. Ideally I would want to repay by releasing the equity from my property

    If you don’t have a CCJ, then you don’t have a charging order, unless you voluntarily agreed to one.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • fatbelly
    fatbelly Posts: 20,504 Forumite
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    expressyourself wrote: »
    I am not planning to let the house sell. Ideally I would want to repay by releasing the equity from my property

    You need to take advice on that from a financial adviser. Whether you're talking about equity release or a secured loan, there will be interest involved. It appears you're looking at a secured loan, which moves the debt to a more dangerous place.

    A charging order only involves interest if several conditions are fulfilled; and orders for sale are not granted if it is the debtor's only residence.
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